The firm said in a statement trading had been “severely affected by the downturn in the economy and the dramatic contraction in parts of the corporate, property and construction sectors in particular”.

The statement added: “Following an exhaustive review of the business, the partners have decided that the business is no longer sustainable.”

Managing partner Simon Etchells said: “It is with great regret that after having considered every possible option to secure the future of the business it was clear that administration is the only option.”

The Firm received a copy of the email sent to staff, which states: "It is clear that the business is no longer sustainable in this market and the partners have no option other than to place the firm in administration.

"The notice of intention to appoint administrators yesterday is the first step in a process that will lead to the dissolution of the LLP.

“We expect the administrators will be appointed during the coming days, and on appointment will then advise us all of the next steps."

Another legal profession publication, The Lawyer, reported on Tuesday Semple Fraser has launched a firm-wide strategic review, which included possible tie-ups with other legal firms for its individual offices.

The firm's Glasgow office was reported to be in discussions with Maclay Murray & Spens; the Edinburgh office with Dundas & Wilson and the Manchester office with Weightmans.

Semple Fraser managing partner Simon Etchells told The Lawyer the firm had been experiencing problems as a result of the slump in the property and construction sectors.

He said: “It’s well known that the market for commercial legal services has contracted, and we’ve been weathering these challenges.

“We’ve reduced our costs but are currently still reviewing the business and our alternatives.

“This process is under way and we will not be making any further comment until it is complete, and the partners have decided on the best way forward for the business, our clients, and our staff.”

Semple Fraser has yet to file full-year accounts for the year to April 30, 2012 and were listed as “overdue” on the Companies House website as of January 31, 2013.

The firm, which was formed in 1993, currently has 20 partners and around 100 staff.